It is now abundantly clear that the Albanese Government is gutless. But what’s worse is that – as recent events demonstrate – it’s also politically incompetent.

When the Commonwealth Bank announced new withdrawal charges of $3 on customers withdrawing cash from branches as opposed to ATMs any reasonably competent political party – particular one threatened with defeat – would recognise what a great opportunity this presented.

While Albanese and Dutton may be deeply unpopular it is hard to believe they are more unpopular than banks.  Given this, any remotely competent Prime Minister, Minister or advisor would be quickly on their favoured electronic device devising some messages about the outrageous actions of the bank and demanding action to reverse the policy. It would be backed up by lots of threats of punitive action.

Moreover, it would not be very hard to frame the bank’s actions as mean, petty and greedy.

The banks, of course, argue that it’s not really an issue because ATMs are still free – although for how long is another matter. Yet it is not, as claimed, just a fee for withdrawing cash but also fee for any transaction involving a teller or manual handling.

Also, what happens if a CBA ATM is broken. It’s not that often but it does happen. Already anecdotal evidence is mounting about some of the problems which are arising. For instance, when a customer went to take cash from a CBA ATM the ATM wasn’t working so she went into the branch. They gave her the money but charged her $3.00.

She complained that this was all because the banks own machine wouldn’t work. They eventually refunded her $3.00 “as a gesture of goodwill”. What will happen to the teller who gave the refund will be another test for how concerned banks are about customer service and whether it is secondary to adding to profits. Moreover, what will happen when similar problems arise across the country making Australians even angrier with banks?

A smart Government would have immediately seized on the issue and taken on some old-fashioned bank-bashing. This would have been met with joy in the community as opposed to some outrage in the AFR and the Murdoch media. Needless to say Albanese was more concerned to avoid outraging the latter than exploiting the former.

A smart government would also have recognised that while the $3.00 itself is not a huge amount it is a great opportunity to frame messaging around it being a symbol of banking greed.

The criticisms are already rolling in. Bernard Keane writing in crikey (4/12) summed it up: “The Albanese government should have responded to the Commonwealth Bank’s new withdrawal charges with threats of immediate reprisal.”

“Given that the single biggest reason the government is struggling is cost of living perceptions, here was a golden opportunity to demonstrate that it not merely gets what’s upsetting voters but is prepared to do something about it,” he wrote.

He also pointed out that governments have many tools at their disposal to make life difficult for the banks.

But then the Albanese Government is unwilling to make anything difficult for the big end of town or powerful lobby groups. Just count the ways – no action on gambling ads on TV; sinking proposed environmental legislation and sidelining your own Environment Minister; doing little or nothing about the abundant tax rorts which benefit property investors and; generally being obsessed with avoiding being wedged by one of the most unpopular Opposition Leaders in recent history.

Albanese is looking increasingly likely to be either defeated or, at best, being able to form a minority government. Whichever, he will go down in history as the Prime Minister able to make Peter Dutton look electable.